Summary
The objective of this proposal is twofold:
- whitelist dTIA/USDC LP token as collateral on Neutron outpost of the Red Bank;
- launch the following High Leverage Strategies (HLS) on Neutron:
- dTIA as collateral with TIA as debt asset;
- dTIA/TIA LP token as collateral with TIA as debt asset;
where dTIA is a liquid staking derivative from Drop protocol, dTIA/USDC LP and dTIA/TIA LP are LP tokens for corresponding Astroport pools.
Listing of the above LP token and HLS markets has been proposed on the forum before [see MRC-109 and MRC-106 respectively], but the infrastructure to launch is only now ready. This duplicate proposal is necessary because the DAO now owns the parameters/oracle contract.
Risks
Risks associated with listing LP tokens and HLS markets have been explored in previous governance proposals (see MRC-109 and MRC-106 respectively).
LP token:
| Parameter | dTIA/USDC |
|---|---|
| Max. LTV | 42% |
| Liquidation LTV | 43% |
| Deposit Cap | 30,000 LP tokens /135,000 USDC |
| Liquidation Parameters | |
| Starting LB | 0 |
| Slope | 1 |
| Max. LB | 0.2 |
| Min. LB | 0.05 |
| Close Factor | 0.5 |
| Protocol Liquidation Fee | 0.25 |
| Reserve Factor | 10% |
| Usable as collateral? | Yes |
| Available to borrow? | No |
HLS:
| Parameter | dTIA with TIA debt | dTIA/TIA LP token with TIA debt |
|---|---|---|
| Max. LTV | 86% | 86% |
| Liquidation LTV | 86.5% | 86.5% |
| Deposit Caps | - | 20,000 LP tokens / 203,000 USDC |
| Liquidation Parameters: | ||
| Starting LB | 0 | 0 |
| Slope | 2 | 2 |
| Max. LB | 0.2 | 0.2 |
| Min. LB | 0.05 | 0.05 |
| Close Factor | 0.5 | 0.5 |
| Protocol Liquidation Fee | 0.25 | 0.25 |
Implementation
dTIA/USDC listing
Init params for dTIA/USDC in params contract neutron1x4rgd7ry23v2n49y7xdzje0743c5tgrnqrqsvwyya2h6m48tz4jqqex06x
{
"update_asset_params": {
"add_or_update": {
"params": {
"denom": "factory/neutron1awgqp5ma90qy0ecezzf6ghple8mpgtlv8z3kez065z7x5fprd4qs7vz4dc/astroport/share",
"credit_manager": {
"whitelisted": true,
"withdraw_enabled": true,
"hls": null
},
"red_bank": {
"deposit_enabled": true,
"borrow_enabled": false,
"withdraw_enabled": true
},
"max_loan_to_value": "0.42",
"liquidation_threshold": "0.43",
"liquidation_bonus": {
"starting_lb": "0",
"slope": "1",
"min_lb": "0.05",
"max_lb": "0.2"
},
"protocol_liquidation_fee": "0.25",
"deposit_cap": "30000000000",
"close_factor": "0.5"
}
}
}
}
Init params for dTIA/USDC in red-bank contract neutron1n97wnm7q6d2hrcna3rqlnyqw2we6k0l8uqvmyqq6gsml92epdu7quugyph
{
"init_asset": {
"denom": "factory/neutron1awgqp5ma90qy0ecezzf6ghple8mpgtlv8z3kez065z7x5fprd4qs7vz4dc/astroport/share",
"params": {
"reserve_factor": "0.1",
"interest_rate_model": {
"optimal_utilization_rate": "0.6",
"base": "0",
"slope_1": "0.15",
"slope_2": "3"
}
}
}
}
Init price source for dTIA/USDC in oracle contract neutron1dwp6m7pdrz6rnhdyrx5ha0acsduydqcpzkylvfgspsz60pj2agxqaqrr7g
{
"set_price_source": {
"denom": "factory/neutron1awgqp5ma90qy0ecezzf6ghple8mpgtlv8z3kez065z7x5fprd4qs7vz4dc/astroport/share",
"price_source": {
"pcl_liquidity_token": {
"pair_address": "neutron1awgqp5ma90qy0ecezzf6ghple8mpgtlv8z3kez065z7x5fprd4qs7vz4dc"
}
}
}
}
HLS listing
Update params for dTIA in params contract neutron1x4rgd7ry23v2n49y7xdzje0743c5tgrnqrqsvwyya2h6m48tz4jqqex06x
{
"update_asset_params": {
"add_or_update": {
"params": {
"denom": "factory/neutron1ut4c6pv4u6vyu97yw48y8g7mle0cat54848v6m97k977022lzxtsaqsgmq/udtia",
"credit_manager": {
"whitelisted": true,
"withdraw_enabled": true,
"hls": {
"max_loan_to_value": "0.86",
"liquidation_threshold": "0.865",
"correlations": [
{
"coin": {
"denom": "factory/neutron1f6wucml5pmys4uh7mwurz2ge2v7gamkqdy03rfuatpdphmjjag3qeutzgx/astroport/share"
}
},
{
"coin": {
"denom": "ibc/773B4D0A3CD667B2275D5A4A7A2F0909C0BA0F4059C0B9181E680DDF4965DCC7"
}
}
]
}
},
"red_bank": {
"deposit_enabled": true,
"borrow_enabled": false,
"withdraw_enabled": true
},
"max_loan_to_value": "0.44",
"liquidation_threshold": "0.45",
"liquidation_bonus": {
"starting_lb": "0",
"slope": "2",
"min_lb": "0.05",
"max_lb": "0.2"
},
"protocol_liquidation_fee": "0.25",
"deposit_cap": "50000000000",
"close_factor": "0.5"
}
}
}
}
Update params for TIA in params contract neutron1x4rgd7ry23v2n49y7xdzje0743c5tgrnqrqsvwyya2h6m48tz4jqqex06x
{
"update_asset_params": {
"add_or_update": {
"params": {
"denom": "ibc/773B4D0A3CD667B2275D5A4A7A2F0909C0BA0F4059C0B9181E680DDF4965DCC7",
"credit_manager": {
"whitelisted": true,
"withdraw_enabled": true,
"hls": {
"max_loan_to_value": "0.86",
"liquidation_threshold": "0.865",
"correlations": [
{
"coin": {
"denom": "factory/neutron1f6wucml5pmys4uh7mwurz2ge2v7gamkqdy03rfuatpdphmjjag3qeutzgx/astroport/share"
}
},
{
"coin": {
"denom": "factory/neutron1ut4c6pv4u6vyu97yw48y8g7mle0cat54848v6m97k977022lzxtsaqsgmq/udtia"
}
}
]
}
},
"red_bank": {
"deposit_enabled": true,
"borrow_enabled": true,
"withdraw_enabled": true
},
"max_loan_to_value": "0.72",
"liquidation_threshold": "0.73",
"liquidation_bonus": {
"starting_lb": "0",
"slope": "1",
"min_lb": "0.05",
"max_lb": "0.2"
},
"protocol_liquidation_fee": "0.25",
"deposit_cap": "40000000000",
"close_factor": "0.5"
}
}
}
}
Init params for dTIA/TIA LP in params contract neutron1x4rgd7ry23v2n49y7xdzje0743c5tgrnqrqsvwyya2h6m48tz4jqqex06x
{
"update_asset_params": {
"add_or_update": {
"params": {
"denom": "factory/neutron1f6wucml5pmys4uh7mwurz2ge2v7gamkqdy03rfuatpdphmjjag3qeutzgx/astroport/share",
"credit_manager": {
"whitelisted": true,
"withdraw_enabled": true,
"hls": {
"max_loan_to_value": "0.86",
"liquidation_threshold": "0.865",
"correlations": [
{
"coin": {
"denom": "factory/neutron1ut4c6pv4u6vyu97yw48y8g7mle0cat54848v6m97k977022lzxtsaqsgmq/udtia"
}
},
{
"coin": {
"denom": "ibc/773B4D0A3CD667B2275D5A4A7A2F0909C0BA0F4059C0B9181E680DDF4965DCC7"
}
}
]
}
},
"red_bank": {
"deposit_enabled": false,
"borrow_enabled": false,
"withdraw_enabled": false
},
"max_loan_to_value": "0",
"liquidation_threshold": "0.01",
"liquidation_bonus": {
"starting_lb": "0",
"slope": "2",
"min_lb": "0.05",
"max_lb": "0.2"
},
"protocol_liquidation_fee": "0.25",
"deposit_cap": "20000000000",
"close_factor": "0.5"
}
}
}
}
Init price source for dTIA/TIA in oracle contract neutron1dwp6m7pdrz6rnhdyrx5ha0acsduydqcpzkylvfgspsz60pj2agxqaqrr7g
{
"set_price_source": {
"denom": "factory/neutron1f6wucml5pmys4uh7mwurz2ge2v7gamkqdy03rfuatpdphmjjag3qeutzgx/astroport/share",
"price_source": {
"pcl_liquidity_token": {
"pair_address": "neutron1f6wucml5pmys4uh7mwurz2ge2v7gamkqdy03rfuatpdphmjjag3qeutzgx"
}
}
}
}
Copyright
Copyright and related rights waived via CC0.
Disclaimers/Disclosures
This proposal is being made by Mars Protocol Foundation, a Cayman Islands foundation company. Mars Protocol Foundation engages in research and development of the Mars Protocol. Mars Protocol Foundation and certain of its service providers and managers own MARS tokens and have financial interests related to this proposal. The aforementioned persons or their affiliates may also have financial interests in complementary or competing projects or ecosystems, entities or tokens, including NTRN, USDC, TIA, and dTIA. These statements are intended to disclose relevant facts and to help identify potential conflicts of interest, and should not be misconstrued as a complete description of all relevant interests or conflicts of interests; nor should they be construed as a recommendation to purchase or acquire any token or security.
This proposal is also subject to and qualified by the Mars Disclaimers/Disclosures. Delphi Labs may lack access to all relevant facts or may have failed to give appropriate weighting to available facts. Delphi Labs is not making any representation, warranty or guarantee regarding the accuracy or completeness of the statements herein, and Delphi Labs shall have no liability in the event of losses or damages ensuing from approval or rejection or other handling of the proposal. Each user and voter should undertake their own research and make their own independent interpretation and analysis of all relevant facts and issues to arrive at their own personal determinations of how to vote on the proposal.